KDIC union says if all financial firms move to the provinces, KDIC should move too

[Financial News] The labor unions of the Korea Deposit Insurance Corporation (KDIC) and the Financial Supervisory Service made clear their opposition to any move to relocate to the provinces. The KDIC union argued that while some financial firms are seeking to move out of Seoul, most financial companies remain concentrated in the capital, so KDIC must stay in Seoul to respond quickly and face-to-face in the early stages of a financial crisis.
On the 24th, the KDIC and FSS unions held a joint press conference in front of the fountain at Cheongwadae Sarangchae in Seoul and voiced their opposition to relocation plans for the two agencies. They argued that the government's push to move public institutions to the provinces could create a financial vacuum. In an era when mobile transactions are part of daily life, they said the first few hours of a financial crisis require an immediate response, and that handling such a situation from outside Seoul would inevitably take longer. They also argued that quick decision-making is essential in a crisis, and that physical distance between institutions could delay the response.
The KDIC and FSS unions explained that "the headquarters of financial firms and financial infrastructure, which are the main objects of our work, are concentrated in the Capital Region," adding that "60% of bank deposits nationwide come from Seoul."
Asked about the continued relocation of financial firms, such as Hana Financial Group's move to Cheongna, Incheon, and the case of the National Credit Union Federation of Korea, whose headquarters is in Daejeon, Kim Young-hyun, chairman of the KDIC union, said, "It makes no sense to say that because some financial firms are moving to the provinces, KDIC, which must respond first in a financial crisis, should also move there." He added, "If all financial firms move to the provinces, then KDIC should move as well." When asked whether initial crisis response could be handled by phone or other wired communication, Kim said, "As we saw during the savings bank crisis, we have to go to the scene and respond directly."
The two unions also argued that relocation could lead to harm for financial consumers. Kim Sang-woo, chairman of the FSS union, said, "Just as shipyards are by the sea and airports are where air routes open, it is only natural for the FSS to be located close to the financial firms it supervises and regulates." He added, "FSS employees take pride in ensuring that financial firms remain sound and that consumers can trade safely. Relocating the FSS to the provinces will hurt financial consumers."
The unions said that if relocation becomes a reality, a large-scale exodus of specialized personnel would be unavoidable. According to an internal survey, only one in four employees said they would continue working even after the headquarters moved. Among employees in their 20s and 30s, the figure was only about one in 10. The unions argued that since many frontline staff are financial and legal specialists, including accountants, lawyers and actuaries, their departure could weaken consumer protection functions.
They also said the move would hurt younger workers. The unions argued that young employees could face disadvantages in terms of family life, housing and career development. Forced relocation of workplaces, they said, would have a negative impact on the lives of younger generations.
Kim said, "Why should the noble goal of balanced national development be achieved at the expense of future generations?" He added, "The deposit insurance agencies of major countries such as the United States and Japan are all located in their capitals."
The unions said, "The damage from forced relocation of workplaces is most unfairly borne by younger generations, including people in their 20s and 30s." They added, "It is a serious contradiction to talk about guaranteeing opportunities for young people while at the same time shaking up their lives. The younger generation has only just begun deciding on its first jobs, and even now it is struggling while carrying the heavy burden of family plans, housing plans and career development." They argued that the government's unilateral relocation policy would become a disadvantage throughout the entire life cycle of young employees.
[email protected] Park Moon-soo Reporter